Odin Says ...

About Home Insurance

Mar 06, 2008

Every once in a while, you should address your needs for home insurance, especially after a change of address.  A move is perfect timing to reevaluate your risk factors and your current policy.  Your needs are bound to change, more so when you move across different dwelling types, such as from a rental to a condo, or from a condo to a house.

The three main factors in assessing your insurance needs are (1) the value of your home, (2) your valuable belongings, and (3) your monthly or annual budget.  Moving time is perfect for listing your possessions, as you are bound to go through them all while you pack.  It is important to have a good idea of how much your belongings are worth, so you don’t end up with a plan with a low limit.  The Insurance Bureau of Canada provides a personal property inventory form, to help you itemize your possessions.  Don’t evaluate your possessions at their current depreciated value.  Rather, figure out how much it would cost to re-buy and replace them.  Once filled, make sure you photocopy this form and keep it in a safe place.  In case of certain emergencies, it will help speed up your claim process.

There are many coverage plans out there, ranging from basic coverage to all-risk protection.  An insurance broker can help you determine the appropriate protection level based on your needs and budget.  Keep in mind that you can insure pretty much anything from collectibles to high-end items; it’s entirely up to you.  Finally, when it comes down to signing a contract, make sure you read it carefully and entirely, as there usually is a lot of fine print.

Depending on your current dwelling, the following are some hints to help you pick the right policy:  For rented apartments, cover your valuables and get civil liability insurance, which protects you in case of accidents you may cause such as water leaks and fires.  For condos, get the same as above.  Normally, your condo fees include an insurance premium to protect the building.  Finally, always update your protection plan after you renovate to take into account your property’s increase in value.  For houses, you’ll also need the same as above, in addition to protecting the house itself.  There are various additional options to cover for unforeseen mishaps such as floods, fires and lightning strikes.  Finally, insure your home for an amount equivalent to what it would cost to rebuild it or re-buy it, disregarding your initial purchase price or the last municipal assessment.  You can hire a professional evaluation service to help out with this.